Quick answer
Cash Credit (CC): A revolving working-capital limit against stock and receivables. Collateral: hypothecation of stock & receivables. Typical tenure: 12 months, renewable. Best for: traders & manufacturers. BankHelpline compares lenders for you free of charge in Mumbai, across India and for NRIs.
By BankHelpline Editorial Team · Reviewed by Sheetal Pawar, Director · Updated
What is a cash credit (cc)?
Cash credit is a short-term revolving facility where the bank sanctions a limit against your stock and receivables. You withdraw as needed and pay interest only on the amount used.
Cash Credit (CC) in Mumbai, Thane & Navi Mumbai
Mumbai traders and manufacturers holding stock commonly use cash credit limits. We help compare banks and prepare stock and debtor statements. BankHelpline is based in Mumbai and helps borrowers across Mumbai city and suburbs, Thane and Navi Mumbai, the rest of India, and NRIs worldwide – by phone, WhatsApp and email.
Key features of Cash Credit (CC)
- Withdraw and repay any time within the limit
- Interest charged only on the utilised amount
- Drawing power linked to stock and debtors
- Renewed every year
Who is eligible for a cash credit (cc)?
- Trading or manufacturing business holding stock
- Regular stock statements
- Healthy banking track record
Criteria differ by lender. Our advisor checks your profile against multiple lenders for free.
Documents required for Cash Credit (CC)
- PAN card
- Aadhaar card or other address proof
- Recent passport-size photograph
- Last 2–3 years ITR with computation of income
- Audited balance sheet and P&L (if applicable)
- Last 6–12 months business bank statements
- GST registration and recent GST returns
- Business registration proof (Udyam, partnership deed, MoA/AoA, etc.)
- Monthly stock and debtors statements
Cash Credit (CC) at a glance
| Secured | Yes |
|---|---|
| Collateral | Hypothecation of stock & receivables |
| Typical tenure | 12 months, renewable |
| Best for | Traders & manufacturers |
How to apply for a cash credit (cc) through BankHelpline
- 1Fill the free enquiry formShare your name, mobile number, city and the product you need. No documents are needed at this step.
- 2Talk to your advisorA BankHelpline advisor calls you, understands your requirement and checks your eligibility with multiple banks and NBFCs.
- 3Submit documents onceShare KYC, income and business or property documents. We help you prepare a complete file.
- 4Get sanction and disbursalThe lender verifies, sanctions and disburses the loan. We follow up until the money reaches your account.
Frequently asked questions
Cash credit is usually given to businesses against stock and receivables, with drawing power based on those assets. An overdraft is typically secured against property, FDs or other assets, or based on account history. Both charge interest only on the amount used.
Drawing power is the amount you can actually withdraw, calculated from your current stock and receivables minus the margin set by the bank. It can be lower than the sanctioned limit.
Key facts from official sources
Lenders must give borrowers a Key Fact Statement (KFS) with the all-inclusive cost of a retail or MSME loan before the agreement is signed. — Source: Reserve Bank of India
Udyam registration for micro, small and medium enterprises is free and done online on the government Udyam portal. — Source: Udyam Registration (Govt. of India)
Customers of banks and NBFCs can file free complaints under the RBI Integrated Ombudsman Scheme at cms.rbi.org.in. — Source: Reserve Bank of India
Written by BankHelpline Editorial Team · Reviewed by Sheetal Pawar, Director · Last updated . Content is researched from official sources such as the Reserve Bank of India (RBI), credit bureaus and lender websites, and reviewed periodically. Rates and charges change often – always confirm the latest terms with the lender.